The Timken Company – a leader in the bearing industry, is considering acquiring the Torrington Company. Torrington Company, a leading manufacturer of needle roller bearings which is an engineering solution segment from Ingersoll-Rand. Both companies operate and compete in same business and therefore, Timken is seeking substantial operating synergies from this largest acquisition of its history. With this acquisition, Timken is increasing the size of company by almost 50 percent. And, Timken will
Introduction Timken Company was the leader in Bearings Industry, however lately the revenues had been declining owing to its cyclical nature and decreased demand for bearings. Timken was facing increased competition from Europe and Japan who were the leading manufacturers of ball bearings. To fight these imports Timken decided to pursue the strategy of bundling where in it could add additional products and services to its products and provide more value to its customers. Timken then started a companywide
... 14 5. Price to accept ...................................................................................... 15 6. Recommendation .................................................................................. 17 Executive Summary: Timken Company requires a report on its consideration to acquire Torrington from Ingersoll-Rand. This reports provides the needed information on Torrington’s worth, price at which Torrington could be acquired and the acquisition strategies to negotiate its
GENEVA BUSINESS SCHOOL Master of Science in Finance Final Assignment June 2011 The Timken Company Student : Nguyen Hoang Ngoc Anh Professor: Dr. John Heptonstall Subject: Strategy and Financial June 2011 I. The bearing industry Bearings industry of various sizes and specifications found their way into everything from space shuttles to household appliances, automobiles, dentist drills, roller skates, and computer disk drives. The bearing industry was facing a variety
THE TIMKEN COMPANY In 2002, The Timken Company was considering acquiring The Torrington Company from Ingersoll-Rand. The acquisition would make a clear statement to the market about Timken’s commitment to remain a worldwide leader in the bearing industry as it would result in the combination of more than 100 years of bearing manufacturing and development experience. Because the two companies shared many of the same customers but had few products in common, customers would surely appreciate the
project.” Gordon East, IT Manager, Timken Business Needs Timken, a 109-year-old company, is a longtime leader in the production of antifriction bearings and specialty steel. The company began as a carriage maker before the advent of the mass production of automobiles and now has offices in 27 countries and 25,000 employees. Timken competes in a global marketplace that requires companies to adapt to ever-changing financial conditions. Executives at Timken were anxious to rebuild the company’s
The Timken Company to Acquire Torrington This memo will examine Timken Company's decision to acquire Torrington by examining the stand-alone value of Torrington, the synergies of this acquisition and the effect on Timken's investment grading. Acquiring Torrington seems to fit well with Timken's long term growing strategy. Torrington and Timken share 80% of their customers but only overlap 5% in their product offerings. Not only would this allow customers to make Timken a one stop shop for
implications can occur within the overall proposal process. Timken, particularly due to its minority position within the European market, has a particular interest in the operations of Rulmenti Grei. These operations of Rulmenti Grei can provide Timken with operational efficiencies to better compete with its European counterparts. It is through this desire that ethical considerations occur. As the case indicates, Rulmenti Grei provides Timken with a broader more diversified product offering. The European
Narrative for the Timken Company Valuation of Acquisition of Torrington The first step in completing this case study was to determine what hypothesis needed to be tested. We came up with the following six questions that needed to be answered in our research and calculations: 1. What synergies, if any, can the Timken Company expect through its acquisition of Torrington? What are the risks? 2. What is the value of Torrington including the expected synergies of its acquisition by the Timken Company? 3. Is
Timken Company Case Student’s Name Institution The Timken Company Case 1. How does Torrington fit with the Timken Company? What are the expected synergies? There are many ways in which Torrington fits with the Timken Company. Firstly, it is apparent that both companies understand the problems of their businesses and industry. This is because they both do business in the automotive and industrial bearings market. This means that the management will not change significantly. Instead, it will